Bombay High Court Allows Petition Against Striking Off Defendant in Specific Performance Suit — Cooperative Society Necessary Party for NOC. The court held that a cooperative society is a necessary party in a suit for specific performance where the plaintiff seeks a direction to the society to give NOC for execution of sale deed.

High Court: Bombay High Court Bench: NAGPUR In Favour of Accused
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Case Note & Summary

The petitioners, who are the plaintiffs in a civil suit, filed a writ petition challenging an order passed by the trial court allowing an application filed by defendant No.1 to strike off the name of defendant No.2, a cooperative housing society, from the array of defendants. The plaintiffs had filed a suit for specific performance of contract, declaration, confirmation of possession, and permanent injunction in respect of a suit property. The suit property belonged to defendant No.2 society, and defendant No.1 was a member of the society. The plaintiffs sought a decree directing defendant No.1 to execute a registered sale deed in their favour and directing defendant No.2 to give a No Objection Certificate (NOC) or any other documents for execution of the sale deed. The trial court allowed the application to strike off defendant No.2, holding that the society was not a necessary party. The High Court, in its analysis, noted that the plaintiffs had specifically prayed for a direction to defendant No.2 to give NOC, which was essential for the execution of the sale deed. The court held that the society was a necessary party as its NOC was required, and the trial court had erred in striking off its name without considering this aspect. The High Court set aside the impugned order and directed the trial court to proceed with the suit with both defendants on record.

Headnote

A) Civil Procedure Code - Order 1 Rule 10 - Striking off Defendant - Necessary Party - In a suit for specific performance of contract for sale of property belonging to a cooperative society, the society is a necessary party as its NOC is required for execution of sale deed - The trial court erred in striking off the society's name without considering that the plaintiffs sought a direction to the society to give NOC - Held that the society is a necessary party and its name cannot be struck off (Paras 3-6).

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Issue of Consideration

Whether the trial court was justified in allowing the application to strike off the name of defendant No.2 (the cooperative society) from the array of defendants in a suit for specific performance of contract.

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Final Decision

The High Court allowed the writ petition, set aside the impugned order dated 13.1.2017 passed by the trial court, and directed the trial court to proceed with the suit with both defendants on record.

Law Points

  • Order 1 Rule 10 CPC
  • necessary party
  • proper party
  • specific performance of contract
  • cooperative society
  • NOC
  • striking off defendant
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Case Details

2017 LawText (BOM) (01) 130

WRIT PETITION NO.296/2016

2017-01-13

Z.A.HAQ, J.

Shri N.B. Bargat for petitioners, Shri H.D. Dangre for respondent No.1

Sau. Saroj W/o Tulsi Sugandh and Shri Tulsi S/o Parasram Sugandh

Shri Harish S/o Ishwardas Amesar and Shri Chapru Nagar Coop. Housing Society Ltd.

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Nature of Litigation

Civil writ petition challenging trial court order allowing striking off of defendant No.2 from suit for specific performance of contract.

Remedy Sought

Petitioners/plaintiffs sought to set aside the trial court order and restore defendant No.2 as a party to the suit.

Filing Reason

The trial court allowed the application of defendant No.1 to strike off the name of defendant No.2 (cooperative society) from the array of defendants.

Previous Decisions

The trial court allowed the application to strike off defendant No.2.

Issues

Whether the cooperative society is a necessary party in a suit for specific performance of contract where the plaintiff seeks a direction to the society to give NOC.

Submissions/Arguments

Petitioners argued that the society is a necessary party as its NOC is required for execution of sale deed. Respondent No.1 argued that the society is not a necessary party.

Ratio Decidendi

In a suit for specific performance of contract, a cooperative society whose NOC is required for execution of sale deed is a necessary party and cannot be struck off under Order 1 Rule 10 CPC.

Judgment Excerpts

The plaintiffs have filed the civil suit seeking for decree in terms of the prayers which are as follows... The petitioners / plaintiffs have assailed the order passed by the trial Court allowing the application filed by the defendant No.1 praying that the name of defendant No.2 be struckoff from the array of defendants.

Procedural History

The plaintiffs filed a civil suit for specific performance of contract, declaration, confirmation of possession, and permanent injunction. Defendant No.1 filed an application to strike off defendant No.2 from the array of defendants. The trial court allowed the application. The plaintiffs filed a writ petition challenging that order.

Acts & Sections

  • Code of Civil Procedure, 1908: Order 1 Rule 10
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